Although Historically and Currently Complicated, Past the Noise, Ageas Is a Fair Business

Ageas would do well to take a leaf out of other midsize European multiline books by clearing up its financial statements and concentrating on core markets. Ageas has strength in its domestic market, Belgium, evolving to be the market leader, and is a dominant force in long-term savings. Its strategy in this line is to continue with the ongoing shift to unit-linked products that are lower margin but capital-light. This is probably one of the reasons behind the company’s gradual improvement in return on equity. Investments have played a part in improving customer service and protection that can be sold with savings products, and this creates a stickier set of customers and products. These investments have oriented around improving standards of underwriting, and despite raising expenses, the net effect in nonlife insurance has been positive. Ageas has a leading health insurance business with expenditure on health in Belgium being one of the highest in Europe. The firm targets price stability and ambulatory care services.